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The Government of the Republic of Serbia

In the service of citizens

Serbia’s EU accession, speedier economic growth set as government’s programme goals

Belgrade, 7 August 2008

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic stated today that Serbia’s EU accession and the country’s speedier economic growth are the government’s programme goals, which can be implemented if our diplomacy is wise and our administration efficient.

Author: Beta

In an interview with the Beta news agency, Dinkic explained that wise diplomacy means returning ambassadors to EU countries, whereas Kosovo should be regarded in an economic light.

He said that he suggested to EU Enlargement Commissioner Olli Rehn multiethnic projects in Kosovo, i.e. the construction of a hydro-energy plant in Strpce and tourist complex in Brezovica.

By intensifying cooperation with The Hague, the new government showed its readiness to meet its obligations inherited from the past and to turn to its European future, while on the other hand, the new government’s first serious economic result will be the signing of the contract with Fiat in September.

With the adoption of a new law on regional development, which is being drafted in cooperation with the European Agency for Reconstruction and Development, the process of more balanced regional development, he explained.

A public debate on the bill will start in September whereas it is to enter parliament in October, he said noting that the law is expected to be adopted by the end of the year.

After ratification of the Stabilisation and Association Agreement (SAA) and energy agreement with Russia, Serbia should adopt a set of bills on the European partnership programme, membership of the World Trade Organisation, anti-corruption, 2008 budget revision and 2009 budget law, he said.

He announced a slashing of red tape and procedures in the autumn, noting that the project will last between 12 and 15 months and will remove one-third of regulations that are now burdening investors.

Dinkic noted that the state will finance the restructuring of Jat Airways should the tender fail. If the tender is unsuccessful, the state will change strategy and opt to restructure, but will not reduce the price.

In that case, the state would purchase new planes while the appearance of the air operator on the stock market would be considered within several years, he explained.

It would be inadequate to sell the company for less than €100 million, i.e., €51 million for 51%, as planned under the tender; he said and recalled that the deadline for the purchase of the tender documentation is September 26.

Dinkic announced that Telekom Srbija will go on the London Stock Exchange next year, being the first Serbian company whose stocks are traded on this stock exchange.

An advisor for Telekom will be chosen by the end of August while the tender for a privatisation advisor for Galenika will be announced in September, he said and added that an advisor for Elektroprivreda Srbije (EPS), whose market value is between €15 billion and €20 billion, will also be chosen soon.

Speaking on free shares of public companies for citizens, he noted that citizens will receive shares worth between €800 and €1,000.

He also announced that the new law on employment will allow for the purchase of an additional five employment years for employees in socially-owned companies under restructuring. This bill has been ready to enter parliament for a year already.

The privatisation of socially-owned companies is about to end. More than 100,000 people out of 2.5 million employees in Serbia work in this sector, Dinkic said noting that the purchase of employment years will apply only to those working in socially-owned companies undergoing restructuring.